Tclarke Regulatory News (CTO)

8 May 2009 07:00



T. Clarke Remains Positive

AGM and Interim Management Statement

Ahead of today's Annual General Meeting to be held at Savoy Place, 2 Savoy Place WC2R 0BL at 12.00 noon, T.Clarke plc (the "Group") releases its interim management statement.

Trading Update

The Group has made a positive start to the year and the order book stands at around £175m (Q1 2008: £200m). Current market conditions continue to be uncertain, however, early indicators suggest some restoration of confidence in the construction of new build commercial properties. Since many of the new build design and planning processes were completed prior to the current market turbulence, it is possible that formal construction activity on a number of commercial development schemes could begin as early as mid 2010. 

The Group's London operations continue to bid for a number of exciting opportunities, including rail infrastructure projects, some of which are linked with the major London transport project Crossrail. Steady progress is being made on the Olympic Stadium, which is on schedule for completion in early 2011. Design activities have commenced on the Westfield Stratford City Shopping Centre, which is located close to the London Olympic site.

In the regions the Group's businesses continue to enjoy success in the public sector (notably in Health, Education, Housing and Prisons). The Group's operations in Scotland, Newcastle, Leeds and Derby also have good forward order books and visibility.

The Group has secured a good balance of new contracts with both private and public sector clients. These contracts include Ravensbourne College, Greenwich; ABN Amro, 250 Bishopsgate; Longbenton Campus, North Tyneside; Black Lion Sports Centre, Gillingham, Kent; Northern Ballet, Leeds; HMP Hull; New Business Enterprise Centre, Derby University; Cherrytree Nursing Home, Nottingham; Longannet Power Station, Firth of Forth, Scotland.

Financial Position

The Group has a strong cash position with net cash balances of approximately £21m as at 30 April 2009. During these difficult times the Group remains vigilant with regard to credit risk and bad debt exposure. At this stage we are not considering any acquisitions, but we remain alert to be able to move quickly if suitable opportunities present themselves. 

Board and Management

As announced previously, the Chief Executive, Pat Stanborough, will retire from the Board as from 31 December 2009. He has agreed to serve as an adviser to the Group for a further year. The Nominations Committee, having decided that an internal candidate would best suit the interests of both the shareholders and the Group, has recommended Mark Lawrence as his successor. The Board of Directors is unanimous in its support of this recommendation. Mark Lawrence, aged 41, is an Electrical Engineer and was promoted to the post of Managing Director of the London Operations in 2007 and has 24 years of service with the company.

Outlook

Although the construction industry is still suffering from turbulent times, the Board believes that T.Clarke is well positioned with a strong balance sheet and an experienced management team. We remain focused on the current year's performance and on building a strong pipeline of work going into 2010 and 2011.

Note:

This interim management statement is being released in accordance with DTR 4.3 of the FSA Handbook and has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose. This interim management statement relates to the period from 1 January 2009 up to the date of publication of this interim management statement.

-ends-

Date: 8th May 2009

For further information contact: